SC stays Maral Overseas' unit closure proceedings

The Supreme Court has stayed the proceedings on the closure of Madhya Pradesh-based Maral Overseas Ltd's textile unit in Khargaon before the Industrial Disputes Tribunal.     

A Bench headed by Justice Dalveer Bhandari, while issuing notice to the Madhya Pradesh government, stayed the proceedings before the Tribunal.     

Maral Overseas has challenged the Madhya Pradesh High Court ruling that dismissed its plea and directed the state government to refer the matter on the closure of its textile unit to the tribunal.     

According to the petition, the Industrial Disputes Act says that in case the state government does not communicate the reason for rejecting the application for closing a unit within 60 days of filing the application for closure, it is deemed that approval is given.

After suffering losses for more than three years, Maral decided to wind up its garment unit and filed a closure application under the Act on September 12, 2007.